Palladium Getting a Bit Shinier

By: staff at ProfitTimes

Although not as sexy as its more shiny brethren-gold, silver and
platinum-this metal is nevertheless on a tear since a widely read report
forecast a supply shortage into 2013. The staffatProfitTimes makes the case for why palladium is now at a
critical point.

Below is a chart of palladium from the bottom of late 2008 until Friday. I
added Fibonacci retracement levels, as well as Fibonacci
Fan lines. We can clearly see why price is struggling with the $700 right
now, as there is both the 76.40% retracement level from the bottom in 2008 to
the top in 2011, AND the 50% retracement level from the top in 2011 to
the bottom of late 2011. We can see that this $700 level has acted as both
support and resistance during the last two years.

Click to Enlarge

Below is a 4H chart of palladium, showing once again that Fibonacci is
clearly at work.

Please note the negative divergence between price and MACD on a 4H basis.

This could mean a short-term top is in, and that palladium could retrace over
the next couple of days.

If the top was set Thursday, The first target would be $670, followed by
$655, and $642.50ish (all are Fibonacci levels).

Click to Enlarge

$670 is very likely on a daily basis if price doesn't break through $700, due
to the fact that the middle Bollinger
Band (or 20-day moving average) is currently at $665 and rising (meaning it
will soon reach this $670 level), where it should provide (at least some)
support.

If $700 would break to the upside, then I expect a lot of technical buyers to
step into the market, as we would then have a higher high in price.